(1) The commissioner may waive the financial
requirements specified in
RCW
48.15.090 in circumstances where insurance
cannot be otherwise procured on risks located in this state. Except as set
forth in (e) of this subsection, at least the following information must be
submitted when a surplus line broker requests the commissioner to waive the
financial requirements:
(a) A detailed letter
explaining the need to waive the financial requirements;
(b) Documentation of the financial condition
of the proposed insurer as reported in its annual statement as of the end of
the preceding calendar year;
(c)
Summary information showing the number of years the company has been writing
the specific line of insurance;
(d)
A written acknowledgment signed by the proposed insured confirming all of the
following:
(i) The insured has been informed
that the coverage will be issued by an insurer (or insurers) that is not an
authorized insurer in the state of Washington;
(ii) The insured understands that financial
requirements for surplus line insurers must be waived by all parties concerned
to enable this coverage to be obtained; and
(iii) The insured understands that there is
no protection for the insured under the Washington Insurance Guaranty
Association because the coverage will be issued by an unauthorized
insurer;
(e) For
accounts requiring a multiplicity of insurers, in lieu of the requirements in
(b) and (c) of this subsection, the commissioner may accept certification from
a surplus line broker that the broker has investigated the financial condition
of the prospective insurers and is satisfied that they are capable of
underwriting the specified risks. Records and documents supporting the broker's
certification must be maintained by the broker for the term of the policies and
as long thereafter as a claim may be litigated, but in no case less than five
years after completion of the transaction.
(2) In no event will the commissioner waive
the financial requirements when the insurer's capital and surplus is less than
four million five hundred thousand dollars.
